Fed stimulus checks probably won't boost economy, some say

If you filed taxes this year and met certain criteria, you soon may get an "economic stimulus" check in the mail from Uncle Sam.

"Everyone already should know that because the federal government sent out mailings about it," said Meg Judge, founding chairman and chief executive officer of the Estero Chamber of Commerce.

"It would have been better if they wouldn't have sent mailings, spending millions of dollars on it."

The checks will be printed and sent out depending upon the filer's Social Security number's last two digits, according to http://www.irs.gov where additional information is available.

Taxpayers who opted for direct deposit into a bank account will get the money more quickly than those who opted for a paper check.

The Internal Revenue Service will begin transmitting funds for direct deposit as early as May 2. The IRS will begin mailing paper checks beginning May 16.

But will the money help boost the lagging economy?

"It'll be a minimal help," Judge said. "But, any little bit will help."

Estero is somewhat insulated from the faltering economy hitting other areas hard, she said.

"The Estero community has really not been impacted as much as other areas because everything is new and booming here," she said. "It's not like we have a lot of negatives like crime. I think in our area we are still going out to dinner and shopping and enjoying life.

"The real estate market has gone down but people are still buying," she said. "But we will certainly welcome any government funding coming this way."

Judge said she doesn't know for sure what she'll do with the money.

"I'm sure I'll buy something," she said. "We don't deprive ourselves of buying anything we see, but it'll make it a bit easier."

However, not everyone believes the checks will make a difference in the faltering economy.

"I think they'll pay their bills with it," said Sis Newberry, manager of Community Outreach Center of Estero.

The outreach center is a thrift store that sells donated merchandise to raise funds for its many missions, such as helping the homeless, fire victims, residents in nursing homes, in addition to missions in Cuba.

The faltering economy has not had an impact on the outreach, she said.

"Our business has been level," Newberry said. "We have not seen any particular increase in business."

But, Ruth Putland, another manager, said she hopes people use their checks to purchase items from the store.

Carol Anderson of Estero, who is retired and has investment income, says she knows how she'll spend the money — if she receives any.

"With all that good money, between rising taxes, rising insurance and medical bills, if we have any left, we will go to McDonald's," she said.

David Luciani, manager of the $1 Store and More in San Carlos Park that serves people from all socio-economic backgrounds, knows what his customers are saying about the checks; they are using the money to pay some bills, not to buy frivolous items or even items they need.

"In the conversations I've had with other business owners and customers, everyone says the same thing, they're going to kind of play catch-up," he said.

As for what he'll do with the money?

"Probably the same as everybody else. Catch up on some expenses, but more than likely put it back into my business," he said.

One of Luciani's customers is Harry Boyle, who manages Mel's Diner in San Carlos Park. He agrees people will use the money to pay everyday expenses.

"Everybody I know, including myself, is behind," Boyle said. He, too, will use the money to pay some bills.

As far as an economic impact to the restaurant, Boyle said he doesn't think the checks will make a difference on whether people go out to eat.

"The reality of it is, they might spend it on one dinner," he said.

Luciani, whose business is 10 years old this year, said he believes the checks will have no economic impact.

"I would tell you that if it succeeds at all, it would be a very short fix," he said. "Instead, they should have put the money towards infrastructure, building roads and jobs."